In an interview, BPI Family Bank president Aurelio R. Montinola III said they have decided to maintain their thrift bank status rather than upgrade to a commercial bank to avoid the possibility of duplicating functions or competing for the same market with mother bank, Bank of the Philippine Island (BPI).
BPI is an expanded commercial bank or a universal bank.
Another reason for remaining a thrift bank according to Montinola, is that there are more opportunities for consumer banking for a thrift and savings bank. "We feel that our niche is in housing, and we feel that it is on area that we can help out. If you are on the thrift side, you are allowed to be involved into housing in a major way. If you are a commercial bank, there is a limit of 20 percent for a bank’s loan portfolio to real estate lending," Montinola said during the launching yesterday of its new housing loan package called Express Pabahay and Express First Home.
Earlier, BPI Family planned to upgrade its status as a commercial bank from thrift and savings bank. This was due to its acquisition of the DBS Philippines Inc., the local arm of the Development Bank of Singapore (DBS). The Development Bank of Singapore (DBS) is the largest bank in Southeast Asia.
The merger will result in a bank with a combined capitalization of at least P22 billion, way beyond the minimum capital required by a thrift bank or a commercial bank. Thrift banks are required to have a minimum capitalization of P325 million to operate while commercial banks must have a P2.4-billion capital.
Meanwhile, BPI Family Bank set aside P5 billion to finance new special loan packages for first timehome buyers.
Express Pabahay provides loans for active members of the Social Security System (SSS) for as low as P250,000 to a maximum of P500,000 for house and lot packages with a repayment rate of 13 percent per annum fixed for five years.
The borrower can get as much as 80-percent of the appraised property value under a maximum repayment period of 25 years.
On the other hand, Express First Home provides loans from P501,000 to P1-million with a fixed rate option of 12-percent per annum for two years, or 15-percent per annum for five years.